How Our Revenue-Based Financing Works
Softloans’ Revenue-Based Financing (RBF) model provides fast, data-driven working capital to e-commerce and POS-based businesses. Instead of fixed monthly instalments, repayments are tied to the merchant’s actual revenue performance. This makes the financing flexible, predictable, and aligned with how modern SMEs operate.
Embedded directly into partner platforms, such as payment service providers, marketplaces, or POS systems, Softloans’ RBF is delivered in real time, with automatic eligibility checks, instant offers, and hands-free repayments.
1. Eligibility Assessment (Fully Automated)
Merchants securely connect their business bank accounts via their banking provider, enabling Softloans to analyse real revenue and cash-flow data. Softloans’ system automatically analyses key business metrics, including:
- Daily and monthly revenue
- Historic sales patterns
- Cash flow stability
- Refund and chargeback ratios
- Customer concentration
- Seasonality and growth trends
This assessment uis close to instant and does not impact the merchant’s credit score.
The result is a data-based decision: eligible / ineligible, with an automatically generated financing offer.
2. Instant Offer Generation
Once a merchant qualifies, they receive an offer directly inside the partner platform.
The offer includes:
- Approved amount
- Total repayment amount
- Revenue-share percentage (the portion of incoming revenue used to repay the advance)
- One-time fee
- Terms and conditions
Merchants can accept, reject, or request a higher or lower amount.
No collateral, no fixed repayment schedules, and no hidden fees.
3. Payout of Funds
After acceptance, funds are transferred directly to the merchant’s bank account.
The capital is often used for:
- Buying inventory
- Running marketing campaigns
- Expanding into new markets
- Managing cash flow gaps
- Launching new product lines
- Seasonal preparation or rapid stock replenishment
Because repayments adjust to performance, the financing naturally supports periods of growth and protects the business during slower months.
4. Revenue-Based Repayments (Automatic and Flexible)
Repayments are collected automatically as a small fixed percentage of the merchant’s incoming sales revenue.
This creates a natural safety mechanism:
- High-revenue days → faster repayment
- Low-revenue days → slower repayment
There are no penalties for slow repayment due to seasonality.
The merchant always knows the maximum repayment amount from the start.
Softloans and the partner platform settle everything behind the scenes - no manual transfers, no invoices, no reminders.
5. Real-Time Monitoring and Transparency
Inside their dashboard, merchants can track:
- Total amount repaid
- Remaining balance
- Daily repayment amounts
- Revenue trends
- Next eligibility for a top-up
This transparency increases trust and reduces customer support friction for partners.
6. Automatic Top-Up Offers
When a merchant repays a significant portion of their original advance, or shows strong sales growth, Softloans can auto-trigger a new eligibility check.
If approved, merchants receive an instant top-up offer inside the platform, without needing to reapply.
This creates continuous access to working capital for growing businesses and recurring revenue for partner platforms.
7. Designed for Partner Platforms (Embedded Lending Model)
Softloans’ RBF is built to integrate seamlessly into:
- Payment service providers
- POS terminal providers
- Marketplaces
- E-commerce platforms
- Accounting / invoicing systems
- SaaS platforms
Partners earn a commission for each financed merchant, while Softloans handles:
- Scoring
- Underwriting
- Payouts
- Repayment collection
- Risk management
- Compliance
- Customer support
The result: a new revenue stream with no operational burden.
Why This Model Works for SMEs
Revenue-based financing gives modern merchants what traditional bank loans rarely can:
- Fast decisions
- No collateral
- Flexible repayments
- Sales-aligned repayment model
- Real-time eligibility
- Continuous access to capital
It fits the natural rhythm of SME operations and is accessible to businesses traditionally underserved by banks.